Bank of India recalls Rs 306-crore loan to HDIL arm

MUMBAI: In what seems to be more trouble brewing for real estate developer HDIL, state-run lender Bank of India has recalled a `306-crore loan given to HDIL subsidiary Privilege Power and Infrastructure. This comes after Union Bank dragged group firm Guruashish Construction to the National Company Law Tribunal (NCLT). Bank officials speaking to ET on the condition of anonymity said that while the notice has been served, they were awaiting a repayment proposal from the developer.“No offer for one-time settlement has been received,“ a Bank of India official said.

However, in response to ET's query , HDIL claimed that it has not received any such notice yet.

“We are not aware of any such notice. However, in case there's any issue, the same shall be resolved with the bank and the accounts will be settled mutually ,“ said Sarang Wadhawan, MD, HDIL.

The recall notice, seen by ET, has been served by Bank of India through its law firm MDP and Partners. The notice names Rakesh Wadhawan, executive chairman, HDIL, and Sarang Wadhawan, MD, HDIL, as guarantors to the loan.HDIL has also been named as the corporate guarantor.

“Despite repeated requests and reminders, you have failed and neglected to make payments to our client,“ the notice served to Privilege Power and infrastructure said. “Even though you admitted the debts, you have failed and neglected to regularise your account and make repayment to our client.“

The bank has also called on the company and guarantors to pay outstanding dues, failing which the lender would initiate legal proceedings against the company . The account was classified as a non-per forming asset on March 31, 2016, by Bank of India.

“The term loan was issued in 2013, and there's an outstanding of over `300 crore, but we haven't received any word from the company about when the repayment will happen,“ said Nishit Dhruva, managing partner, MDP and Partners. The real estate developer is fighting a similar case with Central Bank of India, where the lender had taken symbolic possession of its Kurla property after it had failed to pay `144 crore.According to the company , it will soon clear its dues it owes to Central Bank of India. “We have received a one-time settlement from the Central Bank of India and have al ready paid the first in stallment for the same.

We will adhere to the schedule of repayment and settle our loans with the bank,“ said Wadhawan. HDIL had reported a net profit of nearly `61 crore at the end of March 2017, a rise of 28% over a year ago. Its total income, however, declined 61% from a year-ago period to `132.09 crore. The developer's debt-equity ratio as on March end stood at 0.22 times as against 0.27 times a year earlier. Just a week back, HDIL informed stock exchanges that insolvency proceedings had been launched against one of its subsidiaries Guruashish Construction following a `250-crore default.